Green drive: Under the zero-emission vehicle mandate, car makers must increase the proportion of electric cars they sell
Electric car quotas being forced on manufacturers risk creating ‘volatility and disruption’ in the market, the boss of one of Britain’s biggest dealerships has warned.
That could mean higher prices as companies scale back the supply of petrol and diesel vehicles to meet the targets and avoid fines, Vertu chief executive Robert Forrester said.
Under the zero-emission vehicle mandate, car makers must increase the proportion of electric cars they sell. This year, 22 per cent must be electric, rising to 80 per cent by 2030 and 100 per cent by 2035.
But sluggish demand is making it harder for them to do so.
Forrester said: ‘With the threat of significant fines on manufacturers on missing targets, the risk of potential market volatility later in the year and medium-term is elevated.’
He echoed Ford and Stellantis’s warnings that they could hold back sales of petrol and diesel cars.
Vertu reported an 18 per cent rise in annual revenues to £4.8billion for the year to February 29. Profits rose 6 per cent to £35million.